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Boosting ROI by Providing Booking Flexibility for Loyal Hotel Guests

Case Study
  • Travel & Hospitality

The client, a British multinational hotel chain with thousands of rooms and hotels spanning over 100 countries, was looking to improve upon a booking system that lacked the ability to easily process price changes, including an option for travelers to use their points and cash to pay for hotel stays. This made calculating costs difficult for both the client and its customers, especially if hotel shoppers hoped to redeem reward points, but did not have enough to cover the full cost of a hotel stay.

The difficulty of this process dissuaded customers from using the reward system to make additional bookings with the client, resulting in the loss of potential revenue. EPAM reimagined and re-engineered a points and cash experience for the client that resulted in an increased number of bookings and an estimated return on investment of 760%.

Key Challenges

  • Realigning points and cash pricing
  • Integrating points and cash pricing with the pricing engine
  • Refactoring points and cash redemption workflow
  • Providing points and cash discounts to select member groups

Solution Highlights

EPAM created a new system that gives the client’s customers more flexibility when booking hotel stays. EPAM re-engineered the entire back-end system, first integrating the realigned points and cash pricing with the client’s general pricing engine. With the pricing engine updated, EPAM also gave the client the ability to override pricing engine prices, so that discounts and promotions could be offered for properties with large reward inventories that would otherwise go unused.

EPAM refactored the points and cash workflows, upgrading the old system where fixed prices were hardcoded into every channel with a new system that creates points and cash options based on hotel, date of stay, and length of stay. These refactored workflows on the back-end are responsible for more flexible points and cash pricing and usage on the front-end.

The Results

With the significant updates to the points and cash program completed, EPAM helped the client roll out the new loyalty option in a four-phase process that led to full deployment for booking in all of the client’s hotels and gave customers added incentive to stay loyal to the client’s hotel brand. Once implemented and deployed, the program had the following results in the first two months:

  • 55.9% increase in the number of points and cash bookings
  • 2.7% increase in the number of reward bookings
  • 39.6% increase in overall revenue from points and cash bookings

Furthermore, in the five-year potential revenue stream calculated after the implementation of the new program, estimates show that the project will yield a return on investment of 7.6/1, or a 760% ROI, which is, according to the client, a “conservative estimate.”

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